There are over 49.5 million rental housing units in the US. 46% are small properties with one to four units.
70% of these are owned and managed by individuals. They're known as mom-and-pop landlords.
These small operations may be the first to need help to stay afloat, but real estate investors of any size can benefit from management assistance. Read on to learn signs you should hire a property management company.
You Live Far Away From Your Properties
Having properties in multiple cities or states lets you capitalize on growing markets. Traveling between them requires time, money, and energy.
Individual property managers can be assigned as a go-between for each one of your investments. They can handle tenant requests, emergencies, and legal matters.
Handling even one property requires you to be on-call at all times. Add to that other responsibilities such as family or another job. The stress can affect your performance and even your health and happiness.
Property management services can handle as little or as much as needed. This reduces your stress and gives you your free time back.
You Don't Have Enough Knowledge
Rental properties are subject to laws regulating aspects such as:
- Fair Housing
- Habilitation standards
- Building codes
- Environmental Guidelines
- Security deposits
Not following all of them can leave you with fines or an unpleasant legal battle. You also have to keep reviewing them as they change over time.
The list of other potential real estate management mistakes caused by inexperience is even longer. It includes hiring the wrong vendors or making mistakes during tenant screening.
A professional property management company has an expert team to help you avoid these mistakes. They can also suggest helpful property management strategies you never knew about.
You Can't Find Vendors
Finding the right vendors is key to rental property maintenance. Doing it on your own requires time and money. It also increases the risk of finding ones that are inexperienced or unqualified.
Start looking for a property management company instead. They already have a network of professionals who can fulfill your maintenance requests.
You Struggle to Find and Manage Tenants
The vacancy rate in Ada and Canyon County for Q3 of 2023 averages out at 7.33%. Filling these vacancies is essential, but even your best marketing efforts may not be enough.
You may also have issues with the tenants you already have. These include:
- Late rental payments
- Neighbor complaints
- Illegal activities
- Code violations
Evictions may be the only solution, but they're costly and increase vacancies.
A property manager fills vacancies with better marketing, rental rates, and tenant screening. They can also solve tenant disputes with effective communication.
This doesn't always mean in-person communication. A property manager can provide digital options. 79% of renters prefer direct messages, text, or chat.
Should I Work With a Property Management Company?
Property managers can help real estate investors regardless of the size of their portfolio. They reduce stress and have experienced staff to keep properties profitable.
First Rate Property Management is a property management company with nearly 30 years of experience. Contact us for help navigating the fast-paced world of real estate investment today.